Diana Containerships announced that its Board of Directors has determined to effect a reverse stock split of the Company’s common shares, par value $0.01 per share, at a ratio of not less than one-for-five and not more than one-for-twenty.
The exact split ratio will be determined by the Board and announced by the Company prior to the effective date. The Company’s shareholders approved the reverse stock split and granted the Board the authority to determine the exact split ratio and proceed with the reverse stock split at the Company’s Annual Meeting of Shareholders held on February 24, 2016.
The reverse stock split will take effect, and the Company’s common stock will begin trading on a split-adjusted basis on The Nasdaq Global Select Market, as of the opening of trading on or around June 9, 2016 under the existing trading symbol “DCIX.” The new CUSIP number for the Company’s common stock following the reverse stock split is Y2069P127.
Upon effectiveness of the reverse stock split, a number of shares of the Company’s issued and outstanding common stock (such number to be fixed by the split ratio) will be automatically combined into one issued and outstanding share of common stock, without any change to the par value per share. This will reduce the number of outstanding common shares of the Company.
No fractional shares will be issued in connection with the reverse stock split. Shareholders who would otherwise hold a fractional share of the Company’s common stock will receive a cash payment in lieu thereof at a price equal to that fraction to which the shareholder would otherwise be entitled multiplied by the closing price of the Company’s common stock on The Nasdaq Global Select Market on the last trading day prior to the effective date of the reverse stock split.
Shareholders with shares held in book-entry form or through a bank, broker, or other nominee are not required to take any action and will see the impact of the reverse stock split reflected in their accounts on or after the effective date. Such beneficial holders may contact their bank, broker, or nominee for more information.
Shareholders with shares held in certificate form will receive instructions from the Company’s exchange agent, Computershare, for exchanging their stock certificates for a new certificate representing the shares of common stock resulting from the reverse stock split.